Sinking Gold Prices Pushing Intermediate Traders Out of The market

Gold closed sharply lower on Monday and below November's low crossing at 1670.50 thereby renewing the decline off last month's high. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are turning bearish hinting that sideways to lower prices are possible near term. If February extends today's decline, the reaction low crossing at 1607.30 is the next downside target.

Closes above last Thursday's high crossing at 1760.50 are needed to confirm that a low has been posted. First resistance is last Thursday's high crossing at 1760.50. Second resistance is the reaction high crossing at 1767.10. First support is today's low crossing at 1660.30. Second support is the reaction low crossing at 1607.30.

Gold now has a Chart Analysis Score of -70, which equates to an emerging trend. With our monthly Trade Triangle remaining in a positive position, we are longer term bullish on this metal. Intermediate term traders should be out of this market at the moment and on the sidelines waiting for the next signal with the weekly Trade Triangle.

Monthly trade triangles for Long term trends = Bullish
weekly trade triangles for intermediate term trends = Bearish
daily trade triangles for short term trends = Bearish

Combined Strength of Trend Score = -70


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